Vietnam-headquartered IT services provider FPT Corporation has acquired US-based company Cardinal Peak as part of a strategic move to strengthen its product engineering delivery capabilities in North America.
The investment will leverage Cardinal Peak's 20-year experience of delivering end-to-end product engineering services, including hardware, embedded software, IoT, cloud, and mobile product development, to over 300 companies in automotive, healthcare, robotics, consumer electronics, streaming media, security and safety, and aerospace industries.
FPT will also gain about 100 experts and one office in the United States as part of the deal.
With these additional resources, the global IT firm sets its sights on doubling its product engineering services revenue in the Americas in the next two years.
This goal is partially driven by its investment commitment of US$100 million by the end of 2023 in this strategic market.
Meanwhile, Cardinal Peak will remain an independent entity but now has access to enhanced service offerings, greater scale, and global delivery options through FPT’s extensive network.
FPT Corporation CEO Nguyen Van Khoa expects that the synergy between FPT and Cardinal Peak will result in new digital products, contributing to the advancement of Vietnam’s IT industry.
“Cardinal Peak is a well-respected name in the product engineering industry. The team’s track record of effective collaboration and swift innovative solutions delivery will be a tremendous asset to FPT,” FPT Software’s SEVP and head of FPT Americas, Europe, and Middle East Phuong Dang said.
“We trust that this will be another fruitful addition to our global expansion.”
Cardinal Peak CEO Mark Carrington said it was impressed by the capabilities, culture, and resources at FPT.
“With our combined teams, we can provide greater value to our customers, accelerate innovation in the industries we serve, and expand career opportunities for our employees,” Carrington said.
North America is currently FPT's largest overseas market, where it has 14 offices across the United States, Canada, and Latin America - including nearshore facilities in Colombia, Costa Rica, and Mexico - and employees in 28 states and provinces.
Since 2014, FPT has been conducting M&A with top technology companies worldwide to strengthen its consulting capabilities, expand its customer base, and increase revenue in overseas markets.
Its first M&A deal was in 2014 with RWE IT Slovakia, a subsidiary of European energy company RWE and it also marked the first overseas M&A deal of a Vietnamese IT company.
In 2018, the firm acquired a 90 per cent stake in Intellinet, a rapidly growing US-based digital transformation consulting company. FPT also made a non-controlling investment and became a strategic shareholder of LTS, one of Japan’s top 20 consulting, business management, and digital transformation companies in 2022.
Continuing the expansion in the United States, FPT acquired the entire IT services division of Intertec International in 2023. In October, it became a major investor in Landing AI - a leading computer vision and AI software company in the US.
In 2022, FPT recorded total revenue of US$1.87 billion and more than 60,000 employees.